onsemi supporting customers impacted by Nexperia crisis, CEO says (updated)
03/11/2025 16:07
Updates with additional quotes from El-Khoury AMSTERDAM, Nov 3 (Reuters) - The chief executive of ON Semiconductor Corp ON.O said on Monday the company was providing alternatives to automotive customers impacted by shortages of chips made by Dutch rival chipmaker Nexperia as best it can. "We have a lot of the same customers, and we are supporting our customers to the extent we can," Hassane El-Khoury told analysts after the company reported third-quarter results. He said onsemi was supplying customers with products out of its own product portfolio, not changing its manufacturing plans. El-Khoury also said the core cause of the crisis was that the automotive industry and its direct suppliers have been keeping chip inventories too low. "I've been saying that inventory is low for the last two years, and ... any trip in the supply chain is going to cause a chain reaction, and this is the proof," he said. Nexperia, one of the largest makers of basic chips used in the electronics systems of cars, has seen production curtailed due to an ongoing corporate and geopolitical dispute. Carmakers and their suppliers have warned of production stoppages as a result. El-Khoury's remarks echo those made by another automotive chip maker, STMicroelectronics STMPA.PA. Asked whether ST could help with replacement chips for Nexperia chips, CEO Jean-Marc Chery told analysts on October 23 that "STMicro is part of this process" given that automotive customers had adopted multiple sources for chips following shortages seen during the COVID-19 pandemic. (Reporting by Toby Sterling Editing by Tomasz Janowski) ((amsterdam.newsroom@thomsonreuters.com))